On July 1, 2010, Governor Quinn announced changes to the State of Illinois FY11 Budget, which included reductions of $1.4 billion. The proposed Higher Education budget of $2.1 billion reflects a decrease of approximately $100 million from the FY10 funding level. This funding decrease includes a reduction of $86 million to Illinois public universities, which will effectively take FY11 state appropriation levels down to the FY06 funding level. This represents a decrease for SIUE of $4.2 million for a total, when added to the previous reduction of $1.25 million in support for the School of Pharmacy, of approximately $5.4 million. It should be noted that budget scenarios developed by the University Planning and Budget Council (UPBC) during the Spring 2010 semester included planning which considers this reduced funding level so, as a result, no changes will be necessary to our current budget plan.
Additionally, the SIU system has received $14.2 million in state appropriation payments in the last two weeks, bringing the total June 2010 state payments up to $24.2 million. As a result, the SIU system is projected to have sufficient funds to make payroll through September. Therefore, the decision has been made to reconsider use of the borrowing plan until the first week of September, the date by which any plans to borrow need to be finalized. If the state payments continue in a more consistent pattern during the summer and fall, then it may not be necessary to borrow but, if there is a slowdown in the rate of payments received, then we will proceed with the borrowing plan. The decision will be based on the rate and amount of reimbursements over the next several months. Please bear in mind that the decision to borrow funds will be a system-wide decision.
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